JP Morgan

Ticker JPM

Today's data summary

Market closed
% change
-0.35%
Price US dollars
129.92
Change
-0.46
As of 11:08 12 Nov 2019
Market cap. US dollars
421,962.62 million
As of 11:08 12 Nov 2019

Latest updates

'Solid start' for US earnings season

wall street sign
Getty Images

Goldman Sachs and JP Morgan are effectively kicking off the third quarter reporting season in the US, along with United Health and Johnson & Johnson which have also reported.

Neil Wilson, chief markets at Markets.com, said: "Once again the consumer is proving more resilient than anyone dare credit.

"JPMorgan delivered on both the top and bottom line in the third quarter, with its earnings update boding well for US large cap banks, although Goldman Sachs missed its expected [earnings per share] number.

"It also indicates decent consumer strength that suggests retailers, consumer staples are set up well for this season.

"Broadly we can say Q3 earnings season is off to a solid start with three Dow components reporting better-than-expected numbers and just Goldman Sachs undershooting just."

He said the Dow Jones index was expected to open 100 points or so higher.

JPMorgan traders charged with market manipulation

JP Morgan logo
AFP

The US Department of Justice (DoJ) has charged metals traders at JP Morgan with market manipulation and fraud.

The DoJ alleges that JP Morgan's global head of precious metals trading Michael Nowak, together with two other employees Gregg Smith and Christopher Jordan, ran an eight-year-long scheme to manipulate the global market for precious metals futures contracts.

According to FBI assistant director in charge William F Sweeney Jr, the three traders "allegedly engaged in a complex scheme to trade precious metals in a way that negatively affected the natural balance of supply-and-demand".

“Not only did their alleged behaviour affect the markets for precious metals, but also correlated markets and the clients of the bank they represented," he added.

Big business will face more scrutiny

BBC Radio 5 Live

Amazon chief executive Jeff Bezos
Reuters

Investors are more proactive about holding companies to account, says Trevor Greetham, head of multi asset at Royal London Asset Management, following the release of the Business Roundtable new mission statement, signed by the likes of JP Morgan's Jamie Dimon and Amazon's Jeff Bezos (pictured).

"If you do something stupid in terms of the environment, shareholders will be very upset about it and institutional shareholders may tell fund managers like Royal London Asset Management not to buy that stock," he says.

But how much will really change?

Mr Greetham tells Wake Up to Money: "There will be a lot of scrutiny...to hold them to the standards they've signed up to. So, for Amazon, the ethical treatment of suppliers will be a major deal. Where are the supply chains? What are the conditions of the workers in those supply chains?

"There is no way these companies are all perfect on these measures at the moment but the fact that they realise it is important, I think we will start to see some changes."

Banks sued for currency rigging

skyline
PA Media

Five banks are being sued in the UK over allegations they rigged the foreign exchange markets.

The case has been brought after the five were fined by the European Commission for breaching EU competition law, including the involvement of some of them the "Banana Split" cartel.

The claim, estimated to be worth more than £1bn against Barclays, JP Morgan , Royal Bank of Scotland, UBS and Citigroup, was filed in the Competition Appeal Tribunal (CAT) on Monday.

That's according to US law firm Scott + Scott which is working with Michael O’Higgins, the former chairman of the Pensions Regulator, who is bringing the claim.

"Just as compensation has been won in the US, our legal action in the UK will seek to return hundreds of millions of pounds to pension funds and other corporates who were targeted by the cartel,” said Mr O’Higgins.

It is using the Consumer Rights Act 2015 which was intended to make it far easier for groups of consumers to seek compensation from firms that have fixed prices and formed cartels.

The banks involved did not comment (when asked by Reuters).

Tough time for banks

Today Programme

BBC Radio 4

Man walks past JP Morgan Chase sign
Getty Images

The US earnings season has well and truly begun, with the likes of Citigroup, JP Morgan and Goldman Sachs this week publishing their second quarter results.

And Janus Henderson Investors's Laura Foll says we should take note: "Why this is important is that it is a difficult time for banks globally at the moment."

She says: "Interest rates are very low and are possibly about to go even lower in the US and that makes it very difficult for banks to make money because effectively when interest rates are this low you can't charge much for loans to put it very simply and that matters for the global economy."